Change your view, where does the law allow for the CA DOJ to decide to delay the transfer when they don't have any information that you are prohibited. Just because a person was arrested does not mean that they are prohibited. If they were convicted, there would be a record, but it seems that the DOJ is instead demanding proof that they are innocent. An arrest from years ago would have been a conviction OR dropped/not-guilty, it would not be pending.

I understand what you are saying and I agree completely. I think this situation stinks. My point is that the state law is very vague about how the background check is performed. Actually, that is an understatement: the law does not spell out anything about the process. And this is why they are getting away with what they are doing now.